A full tank of diesel costs the same as it did in 2022. And Meloni postpones the crackdown on discounts

On the eve of the expiry of the excise duty rebate, diesel and petrol prices have reached levels not seen since 2022. Today, self-service refuelling costs 2.067 euros per litre for petrol and 2.177 euros per litre for diesel, according to the daily figures released this morning by the Ministry of Enterprise and Made in Italy. Without the excise duty cut—currently in force for diesel only—prices would stand at €2.347 per litre: as Staffetta Quotidiana notes, this figure far exceeds the all-time high recorded on 17 March 2022, in the wake of Russia’s invasion of Ukraine, when diesel stood at €2.229 per litre.

These are the figures that will be presented to tomorrow’s Council of Ministers meeting, which has been called to consider an extension, and on which officials from the Ministry of Economy and Finance (MEF) are currently seeking agreement. Prime Minister Giorgia Meloni, speaking from the stage at the Bari festival a few days ago, clearly set out the government’s intentions: to suspend blanket aid and establish a framework of targeted subsidies for the most vulnerable groups and the road haulage sector. “We cannot afford to spend any more money to allow those who do not need it – or those who come from France to fill up with petrol – to receive the same support as an Italian earning 1,200 euros a month,” thundered the Prime Minister after six months of across-the-board cuts that have cost 2 billion and 74.5 million euros.

The figures were confirmed yesterday by the Research Service of the Chamber of Deputies and the Senate: from 19 March to 10 September, excise duty cuts cost the state €2 billion and 74.5 million. Of this figure, €689.2 million came from the variable excise duty mechanism. The remainder of the funding is divided between cuts to ministries and advance tax payments from energy companies, which were asked to make a 39 per cent advance tax payment on profits whose distribution has been approved for the 2025 financial year.

Hence the intention to concentrate resources where they are genuinely needed. However, drafting a decree with selective cuts is far from straightforward, and to prevent the price of diesel from soaring to record levels, the government is inclined to proceed once again with across-the-board cuts. This would be the fifteenth extension in six months, including both decree-laws and interministerial decrees, and is expected to cover a maximum of a further two weeks. This will be the time available to untangle the issues and define a framework of targeted subsidies to see us through to the end of the year.

The solution to be found is not only fiscal but also political. The latest proposals under consideration involve a fuel allowance as part of the fringe benefits reimbursed by employers to staff, but the income thresholds for eligibility have yet to be defined, as the majority parties have failed to reach a consensus on this point. There is also a need to define the framework for self-employed individuals with VAT registration numbers who are most vulnerable to price rises, both in terms of the beneficiary group and from an operational and funding perspective. Deputy Prime Minister Matteo Salvini has been particularly insistent on this point, arguing that limiting the support to employees would be “a colossal mistake”.

The Cabinet is also expected to discuss tomorrow the letter in which the government formally submits to the European Commission its request for a deficit derogation for defence expenditure (0.9 per cent of GDP, amounting to 21.7 billion until 2028) and for energy (0.6 per cent of GDP, i.e. 14.4 billion, of which 7.2 billion may be spent in a single year). It is a pity that these resources cannot be used for measures relating to fossil fuels, and therefore to diesel and petrol. There is also the option of taxing banks’ windfall profits, but on this front too, there is not the slightest sign of agreement within the ruling coalition.